1. I am very bearish about the inflation rate in US.
2. but I am not bearish about equity and us debt? why?
3. Because even inflation is out of control but reported inflation rate can be well managed.
4. that is what happened in us history. For exampel during 1980s, to control the high reported inflation, us changed CPI composition in 1983, and change the base for inflation. The the latter, for example, the base changed from 1967=100 (the base) to 1982-84=100 (the new base) in 1988.
some are aruging, it was primarily due to those change, reported inflation are fall into 2% range from hyper inflatin rate.
after 1980s, there is a change almost every 5 years.
